ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
Can't see replies from the following:*Ignore Feature* brewer12345 calmloki ExFlyBoy5 joeea LRDave Midpack Teacher Terry Texas Proud W2R
Background: Retired June 2015 @ age 53
58 & single *No dependents*
Income:
Private sector pension: $3,058.00 per month. *No Cola*
Taxable income (dividends) of $12,165.79 in 2019 (from the taxable brokerage account shown below)
Because I'm 58, I have a high deductible health care plan, & have to watch my income very closely. Contribute to my HSA annually.
Here's the ‘problem’
The taxable account totals $709k…. with 340k in unrealized gains.
A substantial majority of those gains are in 9 investments.
Apple Computer, American Water Works, Crown Holdings, Eli Lilly, Johnson & Johnson, Realty Income, Tesla, Vanguard Div Appreciation ETF,
& Wisconsin Energy. Gains range from 20k to 61k
*I do have one substantial loser. Kinder Morgan -$8000.00
I'd like to gradually trim some of these holdings & get a little more conservative as I close in on 60, but with my income right around the ACA limits already, I don't see any way to go about it, other than to just do it, & take the pain.
I'm not considering selling a huge amount in any given year, more like $1,000.00 out of each. *I'd also adjust my est tax payments accordingly*
A couple people have stated that I should sit down with a financial planner/tax professional, but IMO, that would just be a waste of time/money.
I just don't see any way out of paying the piper if I want to start taking some profits. On the other hand, anytime I think I know at all, I usually get a surprise. So that's my question at this point. Am I overlooking something ?
I recently met with the local rep for my healthcare administrator (Medica) & if memory serves, he stated that there’s a cap on how much you can pay and/or be penalized for going over the income cliff in any given year. Can anyone here confirm that ?
If that's correct, I’ll assume it doesn't matter if you go over the income cliff by $305.00 (which happened to me in 2018) or go over by $30,000.00 the penalty you pay for the subsidies you received in that year are capped.
The most ironic thing about all this, is that early in 2015, when I decided that I needed to get out, I pored over the numbers 2 or 3 times a week for 3 months. Sometime in early April, I came to the conclusion that by the time I was 62, barring some kind of worldwide collapse, Social Security going away, etc, I could have income of $72,000.00 per year, & assuming a conservative portfolio, with historically average returns, the money wouldn't run out until my late 90s.
I literally said to myself out loud “that has to be enough!”
Five years later, I'm trying to keep my income down
Background: Retired June 2015 @ age 53
58 & single *No dependents*
Income:
Private sector pension: $3,058.00 per month. *No Cola*
Taxable income (dividends) of $12,165.79 in 2019 (from the taxable brokerage account shown below)
Because I'm 58, I have a high deductible health care plan, & have to watch my income very closely. Contribute to my HSA annually.
Here's the ‘problem’
The taxable account totals $709k…. with 340k in unrealized gains.
A substantial majority of those gains are in 9 investments.
Apple Computer, American Water Works, Crown Holdings, Eli Lilly, Johnson & Johnson, Realty Income, Tesla, Vanguard Div Appreciation ETF,
& Wisconsin Energy. Gains range from 20k to 61k
*I do have one substantial loser. Kinder Morgan -$8000.00
I'd like to gradually trim some of these holdings & get a little more conservative as I close in on 60, but with my income right around the ACA limits already, I don't see any way to go about it, other than to just do it, & take the pain.
I'm not considering selling a huge amount in any given year, more like $1,000.00 out of each. *I'd also adjust my est tax payments accordingly*
A couple people have stated that I should sit down with a financial planner/tax professional, but IMO, that would just be a waste of time/money.
I just don't see any way out of paying the piper if I want to start taking some profits. On the other hand, anytime I think I know at all, I usually get a surprise. So that's my question at this point. Am I overlooking something ?
I recently met with the local rep for my healthcare administrator (Medica) & if memory serves, he stated that there’s a cap on how much you can pay and/or be penalized for going over the income cliff in any given year. Can anyone here confirm that ?
If that's correct, I’ll assume it doesn't matter if you go over the income cliff by $305.00 (which happened to me in 2018) or go over by $30,000.00 the penalty you pay for the subsidies you received in that year are capped.
The most ironic thing about all this, is that early in 2015, when I decided that I needed to get out, I pored over the numbers 2 or 3 times a week for 3 months. Sometime in early April, I came to the conclusion that by the time I was 62, barring some kind of worldwide collapse, Social Security going away, etc, I could have income of $72,000.00 per year, & assuming a conservative portfolio, with historically average returns, the money wouldn't run out until my late 90s.
I literally said to myself out loud “that has to be enough!”
Five years later, I'm trying to keep my income down
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